Entrepreneurship Concepts Overview
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Questions and Answers

What is a key characteristic that differentiates entrepreneurial businesses from small businesses?

  • Small businesses primarily operate in multiple industries.
  • Entrepreneurial businesses show novelty in their offerings. (correct)
  • Small businesses prioritize market expansion.
  • Entrepreneurial businesses focus on established products.

    • Which of the following represents the calculation of personal characteristics of successful entrepreneurs?

  • Self-efficacy and adaptability (correct)
  • Wealth accumulation and experience
  • Pessimism and decision-making under pressure
  • Risk aversion and conformity

    • What is the relationship between planning and action in starting a business?

  • Success depends on the combination of planning and action. (correct)
  • Effective businesses require minimal planning.
  • Planning leads to immediate financial success.
  • Action is only necessary after developing a business plan.

    • Which notion is associated with the entrepreneurial process?

    <p>Self-belief is crucial for entrepreneurial endeavors.</p> Signup and view all the answers

    Which statement best reflects the nature of entrepreneurship?

    <p>It involves a creative process responding to environmental changes.</p> Signup and view all the answers

    What is a common behavior of small business owners?

    <p>They are mainly concerned with imitating others' business models.</p> Signup and view all the answers

    What is an important mindset for aspiring entrepreneurs mentioned in the content?

    <p>To prioritize self-efficacy and build confidence.</p> Signup and view all the answers

    What is a typical outcome of the entrepreneurial process?

    <p>Most businesses experience a similar start-up process.</p> Signup and view all the answers

    What type of entrepreneurship focuses on ecological issues?

    <p>Sustainable or green entrepreneurship</p> Signup and view all the answers

    Which of the following best describes necessity-driven entrepreneurship?

    <p>It arises when individuals need to create jobs for survival.</p> Signup and view all the answers

    Which nations are categorized as factor-driven economies?

    <p>Pakistan, Jamaica, and Venezuela</p> Signup and view all the answers

    Which term refers to businesses that have significant roles in bringing new products or services to market?

    <p>Corporate entrepreneurship</p> Signup and view all the answers

    What do we call the collective types of corporate, social, and independent entrepreneurship?

    <p>CSI entrepreneurship</p> Signup and view all the answers

    What is the term for businesses that aim for high-value-added manufacturing within a large service sector?

    <p>Innovation-driven economies</p> Signup and view all the answers

    What is the characteristic feature of serial entrepreneurs?

    <p>They repeatedly start and manage multiple businesses.</p> Signup and view all the answers

    What type of firms are over 1 million in number in the Philippines?

    <p>Small and medium enterprises (SMEs)</p> Signup and view all the answers

    What is a key strategy entrepreneurs are encouraged to adopt when faced with challenges?

    <p>Use crowdsourcing for ideas</p> Signup and view all the answers

    Which approach is suggested for entrepreneurs to adapt their business strategy?

    <p>Pivot to alternate markets</p> Signup and view all the answers

    What characteristic is highlighted as important for overcoming failure in entrepreneurship?

    <p>Perseverance</p> Signup and view all the answers

    What concept is described as a strategy to create new opportunities in business?

    <p>Effectuation</p> Signup and view all the answers

    How can small businesses effectively expand their market reach?

    <p>By importing and exporting goods</p> Signup and view all the answers

    What role does innovation play in an entrepreneur's success?

    <p>It is an important factor that enhances potential</p> Signup and view all the answers

    Which of the following strategies is not advisable for entrepreneurs when starting a business?

    <p>Spending without a budget</p> Signup and view all the answers

    Which factor is cited as a significant aspect of an entrepreneur's journey?

    <p>Setbacks and failures leading to growth</p> Signup and view all the answers

    What defines a 'unicorn' in the context of high-growth ventures?

    <p>A firm with a valuation of $1 billion or more</p> Signup and view all the answers

    Which growth strategy involves a firm intending to provide the owner with a high income through superior sales or profits?

    <p>High-performing small business</p> Signup and view all the answers

    Which of the following statements reflects a common myth about small businesses?

    <p>You need to make something to make profits.</p> Signup and view all the answers

    According to the BRIE model, which element is NOT one of the four necessary for starting a business?

    <p>Innovation</p> Signup and view all the answers

    What type of businesses are noted for causing 'creative destruction'?

    <p>High-growth ventures</p> Signup and view all the answers

    What best describes the sales figures for high-growth ventures?

    <p>Sales of more than $1 million</p> Signup and view all the answers

    Which strategy is NOT typically associated with high-growth firms?

    <p>Drop-shipping</p> Signup and view all the answers

    Which statement regarding small businesses is true?

    <p>Small businesses offer jobs to those with atypical work histories.</p> Signup and view all the answers

    What defines a micro enterprise in terms of asset value and employee count?

    <p>Up to PHP 3,000,000 in assets and 1 to 9 employees</p> Signup and view all the answers

    Which asset range corresponds to a small enterprise?

    <p>PHP 3,000,001 to PHP 15,000,000</p> Signup and view all the answers

    What is the primary intent of a lifestyle or part-time firm?

    <p>To provide subsistence financial support aligned with the owner's lifestyle</p> Signup and view all the answers

    What distinguishes a traditional small business from a lifestyle firm?

    <p>It has higher sales goals than $25,000 a year</p> Signup and view all the answers

    Which of the following describes a medium enterprise based on asset and employee metrics?

    <p>PHP 15,000,001 to PHP 100,000,000 in assets with 100 to 199 employees</p> Signup and view all the answers

    What defines a high-performing small business?

    <p>A business that aims for rapid and significant growth</p> Signup and view all the answers

    What is the employee range for small enterprises?

    <p>10 to 99 employees</p> Signup and view all the answers

    What is a key characteristic of large enterprises?

    <p>Assets over PHP 100,000,000 and more than 199 employees</p> Signup and view all the answers

    Study Notes

    Entrepreneurship

    • A process of developing new products or services.
    • The capacity for innovation.
    • Involves creativity and adaptation to the environment.
    • Requires calculated risk-taking with correct decision-making.
    • Can be divided into thinking new ways (creativity) or doing new ways (innovation).

    Starting a Small Business

    • Belief in your ability to succeed is crucial (self-efficacy).
    • Planning and action lead to success.
    • Seek help from various resources for support.
    • Many paths can lead to entrepreneurship.
    • The entrepreneurial process involves a similar start-up process for many firms.

    Types of Entrepreneurs

    • Independent Entrepreneurship: Self-employed founders.
    • Social Entrepreneurship: Founders of nonprofits or for-profit social ventures.
    • Sustainable or Green Entrepreneurship: Focus on ecological issues.
    • Corporate Entrepreneurship: Bringing new products or services to market within a company.
    • CSI Entrepreneurship: A combination of social, independent, and corporate entrepreneurship.

    Types of Economies

    • Factor-Driven Economies: Focus on extracting resources (e.g. Pakistan, Jamaica, Venezuela).
    • Efficiency-Driven Economies: Focus on industrialized economies (e.g. Russia, Brazil, China).
    • Innovation-Driven Economies: Focus on high-value-added manufacturing with a large service sector (e.g. United States).

    Entrepreneurial Firms in the Philippines

    • Over 1 million entrepreneurial firms in the Philippines.
    • Classified as SMEs (Small and Medium Enterprises), independent small businesses, or owner-managed firms.
    • Micro Enterprise (PHP 3,000,000 or less in assets and 1-9 employees).
    • Small Enterprise (PHP 3,000,001 to PHP 15,000,000 in assets and 10-99 employees).
    • Medium Enterprise (PHP 15,000,001 to PHP 100,000,000 in assets and 100-199 employees).
    • Large Enterprises (Over PHP 100,000,001 in assets).
    • Some entrepreneurs become serial entrepreneurs.

    Entrepreneurial Firms in the US

    • Lifestyle or Part-time Firms (Sales of $25,000 a year or less).
    • Traditional Small Businesses (Sales between 25,000and25,000 and 25,000and100,000).
    • High-Performing Small Businesses (Sales between 100,000to100,000 to 100,000to1,000,000).
    • High-Growth Ventures (Sales of over $1 million).
    • Unicorns (High-growth ventures with a valuation of $1 billion or more).

    Myths about Small Businesses

    • Not enough financing available (many options exist including crowdfunding and P2P lending).
    • Need to manufacture something to make a profit (service industries are successful).
    • Failure means you can never try again (successful entrepreneurs often fail before achieving success).

    BRIE Model for Starting a Business

    • Four essential elements: boundary, resources, intention, and exchange.

    Small Businesses and the Economy

    • Create new jobs, especially for those with non-traditional work histories.
    • Introduce new ideas and goods, which can disrupt existing markets (creative destruction).
    • Create opportunities for entrepreneurs, customers, and larger businesses.
    • Find new markets through importing and exporting.
    • Engage in virtual instant global entrepreneurship (VIGE) through e-commerce.

    Entrepreneurial Challenges and Solutions

    • Try again if you don't succeed (perseverance).
    • Scale back to match your resources.
    • Use effectual reasoning (bird in the hand).
    • Consider pivoting to a different market (corridor principle).
    • Test markets outside of your local area.
    • Seek help from others through crowdsourcing.

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    Description

    This quiz explores fundamental concepts of entrepreneurship, including the innovation process, self-efficacy, and various types of entrepreneurs. It highlights the importance of creativity, risk-taking, and planning in starting a small business. Test your understanding of the entrepreneurial journey and its various facets.

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